Reply #27: The Mexican Government CONTROLS the oil in Mexico.

[happyslug]

Given that the oil in Mexico is Government controlled, and the Government NEED the income, it is hard for the recent decline to be a product of Manipulation (i.e. why would the Governing elite risk their control over Mexico for the benefit of OTHER countries oil companies?).

As to the US Reserve, the seven sisters can take the 45 days of US usage the reserves represent with ease. If there is speculation aspect of the recent price increase, release of the oil reserves will reduce that pressure, but if the cause for the recent price increase is REAL (i.e. Production of oil is PERMANENTLY below demand for oil) then the release of the Oil reserves will have, at best, only a temporary effect (i.e after the oil has been used, higher prices will return).

No the best way to lower prices is a three fold attack. First an Information attack to the American people to reduce oil usage (i.e the President, Bush today, Obama or maybe Hillary after January 20, 2009) go on the Air and tell the American people we MUST reduce usage. Praise organizations that are reducing oil consumption. Suggest ways Americans can help reduce the US use of oil. Push people to commute to work by Bike or Mass Transit. Tell people how to use the Internet to help people plan trips. Theodore Roosevelt once said the Greatest power the President has is the "Bully pulpit" i.e. the ability to get heard because one is the President.

Actual reduction of oil usage by the US Government will also help, First by pulling out of Iraq and shutting down the Military will have a greater affect on the price of oil given that 5% of total world oil usage is done by the US Military. Second by asking each department to come up with a plan to reduce actual oil usage i.e. having people travel by train instead of by Plane, having people take public transportation then going by car, even if the trip is longer. Even requiring State Police Forces to buy fuel efficient cars (i.e. In Europe the Typical police car is a VW Golf, what in the US used to be called a rabbit, not the large V-8 sedan used by most US Police Forces). This use of small cars with small four cylinders should be extended to other areas of the Government (Also can be part of the US information program mentioned above, have the President go around in much smaller cars without the Armor whenever it is deemed possible).

Third is change in the law code to encourage other means of transportation. For example permit people to take the mileage deduction even if they are making the trip by bicycle or mass transit, right now if someone takes the bus instead of his car, all he can deduct is the cost of the fare even if the mileage would be more. Fund more rails to trails programs. Fund conversion of older four lane highways into two lanes with a turning lane in the middle and two bicycle lanes on the outer edge (Notice I said older four lane highways, most designed before about 1960, after the Interstate Highway system came into play, such four lane highways were built with what are called "berms", the older four lane highways do NOT have such extras and would be better rebuilt as two lane with a turning lane in the middle do to the fact most have much narrower lanes then more modern highways and most have no berms, most are in high population areas which already limit the speed on such roads).

All of the above will have a greater affect on reducing oil prices by reducing demand then releasing the oil reserves. It means giving up on the idea that we can drill our way out of this mess (Something Bush is unwilling to accept, so I do NOT see him doing any of the above).